Turning inventory management and delivery into a peak season competitive advantage

As recently as 10 years ago, Black Friday was a phenomenon that had limited traction outside North America. Since then, however, it has become the jewel in the local retail crown, surpassing the Boxing Day sales and the pre-festive rush. Its growth has been especially prominent in recent years, with both retailers and shoppers using the season's first major sales event to make up for lost time after long periods of softened consumer spending. 

Such has been the scale of its growth, we've noticed peak season starting earlier and earlier in recent years. In both 2022 and 2023, the peak season surge started not on Black Friday itself but six days prior to it, according to Shippit data. And this year, we've seen the volume of orders increase significantly week on week throughout November. 

But while it's now the pinnacle of peak season, it's by no means the end of it. Both the volume and value of transactions will be sizable throughout December, which remains a crucial and lucrative period for retailers. Black Friday provides far more than just a short-term revenue spike; it provides the opportunity for retailers to reflect and then refine their strategy for December to maximise conversions, revenue and retention. Two of the critical foundations of this are inventory management and delivery experience.

Inventory management
During peak season, when volumes surge and stakes are at their highest, inventory management is critical. Real-time inventory tracking and automated stock updates are crucial for helping retailers avoid stockouts and overstocking, and ensure the right products are in the right place at the right times. Based on their data from recent weeks, retailers should be asking a series of questions to help guide their approach for December

Are certain items selling slowly, for example? If so, retailers could consider offering discounts or bundling these products as gift sets to boost sales and avoid building an excess of a potentially unpopular product. On the flip side, though: what items are in demand? The products that sell strongly in November, should be spotlighted in December, too; for example in email marketing or social shopping posts, or be prominently placed on an online store. What's more, it's critical that these items are well-stocked. 

And what about the question of where products should be stored? If certain products sold better online than in-store, they should be stored in fulfilment and distribution centres, rather than on shop floors. The opposite is true for items that were more popular in-store than online. Proactive inventory management doesn't just prevent headaches in December; it ensures retailers can meet customer demand with confidence, keeping conversions and customer experience high. 

Deliver when it matters most
Few things have the power to ruin a festive period quicker than a gift that didn't arrive on time. Delivery has a huge impact on satisfaction and, therefore, loyalty all year round, but that's never more true than now when the stakes are so high. Millions of deliveries will flow through Shippit's platform during the Black Friday weekend, and within those are insights and learnings that will guide December, too. 

Convenience, flexibility and transparency are critical. If retailers utilise an agnostic delivery platform that provides access to a range of options from same-day and next-day, to click-and-collect and standard delivery, they'll increase conversion rates, improve customer satisfaction and boost retention. Just as flexible delivery options are critical, so too is transparency and accuracy.

According to Shippit research, the average retailer estimates standard delivery to take 5.6 days, when in reality, the actual average delivery takes just 2.2 days. As customer expectations increase, retailers are under-promising so they can over-deliver. However doing so can hurt conversion rates, particularly ahead of the peak season when timely, reliable delivery is essential. Retailers should leverage real-time data from their Black Friday and November deliveries to provide accurate delivery timelines.

Retailers should ask themselves whether they're communicating their delivery timelines and policies accurately, whether they have enough capacity to meet the heightened demand, and whether they provide enough express options to capitalise on the inevitable last-minute December rush too. With tools like Shippit Insights, retailers can access rich, real-time data to help them understand how their shipping and delivery services are performing, providing a foundation for success for December. 

There's a growing optimism in the industry that we're approaching an inflection point and that for the retailers who seize the opportunity presented by peak season, there is reason to be optimistic ahead of 2025. However, the retailers who make the most of peak season aren't those who set a course and stick to it; it's the retailers who regularly analyse their approach and refine their strategy. Those that do so and use technology to optimise both their inventory and their delivery experience will be well-placed to turn peak season into a driver of long-term customer retention and revenue.